Manufacturing Activity Slows Amid Fiscal Cliff Concerns

New figures show U.S. manufacturing activity is much weaker than expected, according to a report on MarketWatch.com.

On Wednesday, the Federal Reserve said manufacturing companies reported a slowdown or contraction in the shadows of the fiscal cliff.

“The extent of weakness in manufacturing was more pessimistic than recent reports on durable goods and industrial output, and caught economists by surprise,” the Marketwatch report said. Information technology, auto parts producers and heavy equipment makers were impacted the most. The aerospace and aviation equipment industries appeared to be holding steady.

Manufacturing is a critical economic driver in the Dayton region, supporting 112,000 jobs and $5.6 billion in annual payroll, nearly 20 percent of the total payroll in a 14-county region surrounding Dayton.

This year has seen a flurry of announcements from companies in the region — from small to large — that plan to expand.

Most recently Honda Motor Co. said it will invest $200 million in its local operations that will include hiring 200 new workers. That move that is sparking the region’s suppliers to Honda to grow as well.

Plus, Abbott Laboratories is building a $270 million nutrition drink manufacturing plant in Tipp City.